The nuclear missiles and bombs market is expected to register a CAGR of over 2% during the forecast period.
- The increasing military expenditure and the rising threats for various nations due to border security issues and the growing terrorism, along with the advancements in the hypersonic missile technologies are the major factors anticipated to drive the growth of the market.
- However, the treaty on the prohibition of nuclear arms, which is intended to prohibit the use of nuclear weapons, may restrain the market growth during the forecast period.
Key Market Trends
Growing Defense Budgets are Driving the Market
Military powerhouses, such as the United States, the United Kingdom, China, and India, are focused on augmenting their military firepower and defensive capabilities, in the wake of the growing threats from other nations. The uncertainties in territorial rights and the nations’ growing quest for global dominance are among the major causes disturbing the geopolitical climates. The most common reaction of governments to counter the treats is to increase military spending, in order to improve the security situation in their respective countries. According to SIPRI, the global military expenditure reached USD 1917 billion in 2019, an increase of 3.6% from 2018, which is the largest annual growth in spending since 2010. United States, China, India, Russia, and Saudi Arabia were the five largest spenders in 2019. The growth in defense budgets will support the nations to enhance their combat capabilities and help them execute their defense strategies as planned. As nuclear weapons play a major role in the defense strategies of all global nuclear powerhouses, a certain amount is being allocated in the defense budgets for the development of nuclear weapons or the missiles that are capable of delivering nuclear warheads. Thus, the growth in defense budgets will help the growth of the market during the forecast period.
Nuclear Missiles Segment Held the Largest Market Share in 2019
By type, the nuclear missiles segment accounted for the largest market share in 2019. The main reason for the higher share of the segment is the advantages offered, as compared to gravity bombs. Nuclear missiles have a wide range of operation, ranging up to thousands of miles, which is not the case with the gravity bombs. Also, nuclear missiles can be operated remotely, so that the person launching the weapon will not have any physical or radiational effect following the blast. This may not be the case with gravity dropped bombs, in which the pilot will be in near vicinity to the bomb. If the gravity bombs are dropped by means of a UAV, it must be survivable enough to penetrate modern air-defenses and drop nuclear gravity bombs on the enemy territory, which is something only a few aircraft are currently capable. Due to such advantages, the development and procurement of the nuclear missiles segment are currently high. Several nations are developing new nuclear missiles, while other nations are planning to build new ones in the years to come. For instance, the US is planning to develop a new nuclear-armed, submarine-launched cruise missile, with a goal of deploying the weapon in about 7-10 years. Such developments are envisioned to bolster the market prospects for the nuclear missiles during the forecast period.
MBDA, Raytheon Technologies Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, and Thales Group are some of the prominent players in the market. Players in the market are focusing on developing advanced missiles with higher speeds and lethality, which will help them gain new contracts with the militaries. As such, the focus on developing hypersonic nuclear-capable missiles, that can penetrate advanced air defense systems has increased with the major defense contractors currently working towards developing such technologies. Partnerships among players will facilitate technology transfer, thereby helping the growth of the players during the forecast period.
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